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John Ehlers' Zero Lag EMA - backtesting with VSTpro


"Zero Lag is a new concept in adaptive technical analysis.
This simple technique of applying a measured amount of error correction has resulted in both an effective technical indicator
and automatic trading strategy that are free from the transients that usually accompany more sophisticated filters."


Well, let's take a look.

First, we'll check that the only available MetaStock code for John Ehlers' Zero Lag EMA plots a correct and identical Zero-Lag setup:



John Ehlers' Zero Lag EMA TradeStation indicator on his MSFT chart






Zero Lag EMA MetaStock indicator on identical chart







John Ehlers' original Zero Lag EMA strategy (32/22/0.75) performance on MSFT for past 12 years







As above, but with 10/16/0.75 parameters







... and with the VSTpro's Market Trend Filter (MTF) added - note the reduced risk







VSTmod backtest median results of John Ehlers' original Zero Lag EMA strategy (32/22/0.75),
based on 12 years' EOD data of all current S&P 500 stocks:

Past performance is not necessarily indicative of future results.
Results above may vary depending on data used:
We use and recommend EOD data from Premium Data.

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and should only be used by investors who are aware of the risk inherent in trading.

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any investment losses based on the use of the VST & VSTpro software.




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